Nortech Systems, Inc.      Quent Finkelson         612-473-0833
                           Perry Ketchum           612-513-9131
Cray Research, Inc.        Mardi Larson            612-683-3538


Nortech Systems and Cray Research Halt Negotiations for
Machining Facility Acquisition

Minneapolis and Eagan, Minn., January 12, 1996 -- Nortech
Systems, Inc. (Nasdaq:NSYS) and Cray Research, Inc. (NYSE:CYR)
announced today that they have halted negotiations for Nortech
to acquire Cray's Machining Center, 206 Cashman Dr., Chippewa
Falls, Wisc., Cray's facility for manufacturing high-tolerance
machined parts.  The companies had signed a letter of intent in
November of 1995.

Nortech Systems said the Cray acquisition was one of a number
of paths it is pursuing to expand its contract manufacturing
capabilities.  Recent acquisitions have added significantly to
Nortech's revenue base, and it continues to seek other
synergistic acquisition opportunities.

Cray said it plans to reconsider the various alternatives
available to it, including the pursuit of other partnership
and/or sale opportunities for future operation of the facility.

Nortech Systems, Inc., based in Wayzata, Minn., with facilities
in Bemidji, Minn., August, Wisc. And Fairmont, Minn., is a
manufacturer of wire harnesses, cable assemblies and
electromechanical assemblies for the commercial and defense
industries.  Nortech's Imaging Technologies Division, Plymouth,
Minn., designs, manufactures and markets high-performance
display monitors for medical imaging, document imaging, radar
and industry applications.

Cray Research provides the leading high-performance
computing tools and services to help solve customers' most
challenging problems.

                              ###